We will do complete comparison on Rocket loans personal loans reviews. I will share in details with each and every aspect and also share the pros and cons.
When dealing with personal loans, it is always best to shop properly and compare rates and terms in order to get what is best suited for you.
Not all lender options are the right options for everyone. It is very important to note that your credit score is quite essential when shopping for a lender or going through your options.
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So, first, consider what your credit score report says before you start to shop. A lot of lenders usually go by credit score evaluation to determine rates and offers. If you have a variety of credit scores, Rocket Loans personal loans might be a great option for you. Although, someone with a higher or excellent credit score may find other lender options are best for them. This is because they may be opportune to find better rates somewhere else.
Rocket Loans Personal Loans Reviews – Complete Comparison
Now, moving on from credit scores, Rocket Loans personal loans have some charges that might not seem very enticing to you as a borrower. These charges include:
Late Fees – Rocket Loans Personal Loans
These are incurred when there are delays in your repayment. When your due date is reached and passed for a specified period of time, Rocket Loans may charge you a certain amount or percentage for lateness. It is basically to protect the business of the lender platform as late payments can interfere with the flow of other transactions and without factors like the ‘late fees’, it would be difficult to make clients or borrowers more inclined to pay early and on time.
For the borrower, this can be quite burdensome; and it is something to consider when opting for some lenders. To avoid the attraction of charges like this late fee, what you need to do is simple; pay on time. It helps you save on interests as well and also helps you keep a good track record.
Origination Fees – Rocket Loans Personal Loans
Based on your financial information, Rocket Loans take a fee of 1-6% of the borrowed amount. This would be taken out as a deduction from your loan amount even before you are credited with the loan. That means, if you plan on taking a loan offer of $1,000, up to $60 would be taken off before you are credited with your funds; leaving you with $940.
This should be put into consideration when requesting a certain amount. If you need a specific amount, it is best to add the origination fee to the amount you are requesting, so it doesn’t affect the loan amount you need. In detail, if you need $1,000, request about $1,070.
Returned ACH transfer or Check fees – The fee is set at $15. This is another factor you may want to consider when thinking of applying for a Rocket Loans personal loans.
With all these charges, some borrowers might see this as a setback. Rocket Loans personal loans can be quite problematic if you have a poor credit history, a high debt-to-income ratio or a low credit score. Since interest rates are fixed and can go from 5.97% (with auto-pay discount) up to about 29.99% APR (without auto-pay discount). A loans’ APR (annual percentage rate) can drastically affect how much you pay as a borrower. So, this APR coupled with the late fees (if applied) and origination fees can lead you towards a stiff debt cycle.
In addition to this, their repayment plans can be quite inflexible, disallowing you from creating your own suited timetable for repayment if so desired.
Rocket Loans Personal Loans Reviews – Example
Here is a detailed example of how their finance charge works and affects your loan. (Note that the finance charge is the total cost of the loan, including all interest and fees incurred at the time of origination):
If you borrow $10,000, your origination fee is $299 based on 2.99%. The net funds that will be deposited into your account will be $9,701. Your term is 60 months and the interest rate is 10.5%. The Annual Percentage Rate (APR) will be equal to 11.86%. Your monthly payment is then, $214.94. Your total interest will be $3,204.03 and the total finance charge will be $3,503.03. The interest used in this example is based on the fact that the borrower did not default in each monthly payment using the ACH repayment.
Another point to note is that while applying for a personal loan with Rocket Loans, you pre-qualify online by giving information about yourself like your annual income and status of employment and the like. Once that is done, offers with potential rates and conditions are given. Then to proceed with an offer, you have to become a registered user on the Rocket Loans website and go through the complete application process online. The process may lead to a deep pull of your credit and will in turn affect your credit score as an inquiry.
When thinking about paying back your loans, consider the fact that you can save on interest if you stick to your due date and payback on time.
If you are unsure about the amount you can borrow with Rocket Loans personal loans, you should consider between the amounts of $2,000 and $45,000 of personal loans. The lenders will however put into consideration, the state you live in and their evaluation of your ability to repay. Your ability to repay can be determined by your income (mostly monthly), debt-to-income ratio and credit profile.
It is important to note that they only offer two loan terms, which are 36 months or 60 months. This is a very inflexible term, and you either take it or leave it.
If you end up qualifying for a low rate and favorable terms, Rocket loans, a personal loan can help you with money to do just about anything you plan on doing.
It is very handy, especially when you are in need of a stress-free and quick application and you are eligible for same-day funding. Even if you do not qualify for same-day funding, you still could have a good chance to get cash fast, depending on the bank you use.
Rocket Loans Personal Loans Reviews – Pros and Cons
While all their conditions might be discouraging, Rocket Loans is fast and has quite a convenient borrowing solution, therefore could make a worthwhile option for some people, including you. The best thing to do is to gauge the options properly and weigh the pros and cons before deciding.
The Cons Include:
Limited repayment terms, potentially high rates, charges fees and no co-signer. Their inflexible repayment conditions, charges, rates and the restriction against a co-signer; which sometimes aids qualification for lower interest rates, can make the process of loaning quite strenuous and unpleasant. Therefore, if you would prefer something else other than these options, you would have to go for another lender platform.
The Pros Include:
Same-day funding, no prepayment penalty (allowing you to save on interest), low borrowing minimum, have pre-qualification option and openness to borrowers with fair credit. So, despite the cons, Rocket Loans pros can encourage you to borrow from them. Rocket Loans have made certain automated processes to make application and transaction simpler, faster and secure.
They verify your data; identity and income, validate your bank account electronically and require you to log in to your online bank account to verify your information. This makes things easier for you as a borrower and also keeps your information processing organized.